New Law on Public Procurement: Comprehensive Overhaul of the System Towards Alignment with EU Standards

On 23 June 2026, the President of Ukraine signed Law of Ukraine No. 4888-IX "On Public Procurement" (the "Law"). The Law introduces a new regulatory framework for public procurement and is intended to align Ukrainian legislation more closely with EU standards.

The adoption of the Law represents a comprehensive overhaul of the public procurement system and an important step towards its alignment with EU standards. The Law replaces the current Law of Ukraine No. 922-VIII, revises the applicable value thresholds and procurement methods, introduces dynamic purchasing systems, updates the rules governing framework agreements and amendments to public contracts, and strengthens local content requirements.

The changes will be introduced gradually. Some of them will already affect the performance of existing contracts – for example, the updated local content requirements will apply from 24 August 2026. However, the full transition to the new procurement framework will take place on 24 March 2027.

Below, we outline the key provisions of the Law and their practical implications for contracting authorities and bidders participating in public procurement.

NEW ARCHITECTURE OF PROCUREMENT METHODS

Law No. 922-VIII provided for three competitive procurement procedures: open tenders, restricted tenders and competitive dialogue. The negotiated procurement procedure was available as an exception.

The new Law retains these procedures while expanding the list to include:

• innovation partnership – for the procurement of goods, works and/or services involving innovative solutions or technologies where the relevant need cannot, or cannot reasonably, be met by goods, works or services already available on the market; and

• competitive procedure with negotiation – where previous open tenders did not result in the award of a public contract because the tenders failed to meet the requirements relating to the subject matter of the procurement or the tenderers failed to satisfy the applicable qualification requirements. This procedure may also be used for the procurement of goods, works or services where a completed design for their performance or provision is available.

In addition, the negotiated procurement procedure has been retained in a modified form under the name "negotiated procedure without prior publication".

The Law also introduces three new procurement methods: procurement for the award of reserved contracts, procurement through a dynamic purchasing system, and joint procurement. The provisions governing reserved contracts will take effect upon the entry into force of a separate law regulating such contracts.

VALUE THRESHOLDS AND DENOMINATION IN EURO

The Law sets value thresholds in Euro, exclusive of VAT. Their equivalent in Ukrainian hryvnias will be calculated using the official exchange rate of the National Bank of Ukraine as of 1 January of the year in which the procurement is conducted.

Depending on the category of contracting authority, the following minimum value thresholds will apply for the mandatory use of procurement methods:

• for central and local government authorities, public social insurance bodies, as well as legal entities and associations thereof that meet the needs of the state or a territorial community – EUR 10,000 for goods and services and EUR 40,000 for works;

• for contracting entities operating in certain sectors of the economy – EUR 20,000 for goods and services and EUR 110,000 for works.

Goods and services with a value of up to EUR 2,000 and works with a value of up to EUR 5,000 may be procured without using the electronic procurement system and without publishing a report. For procurements with a value between these amounts and the relevant threshold, the Law provides for a request for proposals within a dynamic purchasing system, the use of the electronic procurement system or, in specified cases, procurement outside the system subject to the publication of a report.

PROCUREMENT PLANNING

The Law introduces new procurement planning requirements:

• the annual procurement plan will additionally specify the contracting authority’s abbreviated name, contact persons and their contact details and, in the case of a framework agreement, its duration;

• where a central purchasing body is engaged or joint procurement is conducted, the plan will specify the relevant body or other contracting authority responsible for conducting the procurement;

• the estimated value must be current as of the date on which the procurement is announced and must include all costs of the contractor that may be incorporated into the contract price, including fees, payments and commissions. The methodology for determining the estimated value will be approved by the Cabinet of Ministers of Ukraine;

• oral and other market consultations conducted outside the electronic procurement system must be documented in writing or by means of an audio or video recording. An economic operator involved in preparing the procurement may be excluded from participation only where its competitive advantage cannot be eliminated by other means and after it has been given an opportunity to demonstrate that its involvement did not distort competition.

FRAMEWORK AGREEMENTS

The Law significantly expands the use of framework agreements:

• framework agreements will cover not only goods and services but also works;

• a framework agreement may be concluded following any procurement procedure, including an innovation partnership, a competitive procedure with negotiation and a negotiated procedure without prior publication;

• a framework agreement may be concluded with one or more entities. The mandatory participation of at least three suppliers will no longer be required;

• as before, the overall term of a framework agreement may not exceed four years. However, a longer term will be permitted in exceptional cases where justified by the subject matter of the procurement and duly substantiated by the contracting authority in the tender documentation.

A framework agreement may be concluded with one or more entities. Where a framework agreement is concluded with a single economic operator, public contracts will be awarded within the terms laid down in the framework agreement. The contracting authority may invite the economic operator, through the electronic procurement system, to supplement its tender. However, such supplements must not materially modify the terms of the framework agreement or contradict them.

For framework agreements concluded with multiple entities, the Law provides for three contract award models:

• First model – without a new selection procedure. This model applies where the framework agreement already sets out all the terms governing the supply of goods, execution of works or provision of services, as well as an objective mechanism for determining the economic operator to which a particular contract will be awarded.

• Second model – a combined model. Some contracts may be awarded without a new selection procedure, while others may be awarded through a selection procedure among the parties to the framework agreement. This model may be used only where it is provided for in both the tender documentation and the framework agreement itself.

• Third model – a selection procedure among the parties to the framework agreement. This model applies where the framework agreement does not set out all the terms governing performance. In such cases, the contracting authority conducts a selection procedure through the electronic procurement system using an electronic auction. The award criteria may include price, life-cycle cost, or price together with other criteria related to the subject matter of the procurement. Where only one economic operator submits a tender, no auction is conducted and that economic operator may be selected as the successful tenderer.

The aggregate value of contracts awarded by a contracting authority under a framework agreement may not exceed the estimated value of that framework agreement determined by the contracting authority.

DYNAMIC PURCHASING SYSTEMS AND THE ELECTRONIC MARKETPLACE

The Law introduces a dynamic purchasing system – a fully electronic method for procuring goods, works and services whose characteristics are generally available on the market and can be standardised.

A dynamic purchasing system will operate in two stages:

• at the first stage, the system is established and candidates undergo qualification;

• at the second stage, procurement is conducted among qualified candidates through a competitive selection procedure or a request for proposals.

The dynamic purchasing system will remain open to new candidates throughout its entire period of operation.

The electronic marketplace is a method for conducting the second stage of a dynamic purchasing system established by a central purchasing body designated by the Cabinet of Ministers of Ukraine. Procurement through the electronic marketplace will be conducted by requesting proposals from qualified candidates.

QUALIFICATION REQUIREMENTS AND GROUNDS FOR EXCLUSION

The Law generally retains the existing approach to establishing qualification criteria for participants in procurement procedures, as well as the procedure for self-declaring the absence of grounds for exclusion from a procurement procedure.

To confirm its ability to perform the contract, a contracting authority may require a participant to demonstrate that it has:

• the necessary equipment, material and technical resources, and technologies;

• appropriately qualified employees or other engaged personnel;

• experience in performing similar contracts;

• sufficient financial capacity.

These requirements must be related to the subject matter of the procurement and proportionate to its scope.

The maximum annual turnover that a contracting authority may require from a participant will depend on the value of the procurement:

• for procurements whose value does not exceed the threshold established by the Law – no more than the estimated value of the procurement or the relevant lot;

• for procurements whose value exceeds that threshold – no more than twice the estimated value of the procurement or the relevant lot.

For framework agreements, financial capacity will be assessed by reference to the estimated value of the public contracts to be performed simultaneously. Where it is not possible to determine such value, the total estimated value of the framework agreement shall be taken into account.

The list of grounds for exclusion has been supplemented by the following:

• a competitive advantage obtained through involvement in preparing the procurement, where that advantage cannot be eliminated by other means;

• a conflict of interest that cannot be resolved by other measures.

Participants will confirm the absence of most grounds for exclusion by submitting a self-declaration through the electronic procurement system. The period for the successful tenderer to submit supporting documents has been reduced from 10 to 8 days from the date of publication of the notice of intention to conclude a public contract.

DIVISION INTO LOTS, VARIANTS AND MIXED PROCUREMENT

The current Law No. 922-VIII already permits the subject matter of a procurement to be divided into separate lots. However, the new Law regulates the division into lots in greater detail by clarifying the rules for forming lots, the requirements for their description and the procedure for procuring individual parts of the subject matter.

For procurements of goods and services exceeding EUR 20,000 and works with a value of at least EUR 80,000, a contracting authority that does not divide the subject matter into lots must provide reasons for its decision in the tender documentation.

For procurements of goods and services exceeding EUR 140,000 and works with a value of at least EUR 5.404 million, the contracting authority may limit the number of lots for which a single participant may be selected as the successful tenderer. The conditions governing such a limitation and the procedure for determining the relevant lots must be set out in the tender documentation based on objective and non-discriminatory criteria.

For procurements with a value of at least EUR 140,000 for goods and services and at least EUR 5.404 million for works, the contracting authority may permit participants to submit variants – alternative tenders with different technical characteristics. A variant must satisfy the contracting authority’s minimum requirements and relate to the subject matter of the procurement. Each participant may submit only one variant.

The Law also introduces the concept of mixed procurement, which simultaneously comprises goods, works and/or services. Its subject matter will be determined as follows:

• where the procurement comprises goods and services – by reference to the component with the higher estimated value;

• where the procurement comprises works together with goods and/or services – by reference to the component that constitutes the principal purpose of the contract and is essential to achieving the intended procurement outcome.

Where mixed procurement comprises components that fall both within and outside the scope of the Law, the procurement will be conducted under the Law if those components cannot be procured separately. Structuring mixed procurement for the purpose of avoiding the application of the Law is prohibited.

PUBLIC CONTRACTS AND THEIR AMENDMENT

The Law specifies the circumstances in which a public contract or framework agreement may be amended without conducting a new procurement. These include:

• changes to the price or other terms in the circumstances and in accordance with the procedure provided for in advance by the contract or framework agreement;

• the procurement of additional goods, works or services from the same supplier, subject to the conditions established by the Law;

• changes resulting from circumstances that the parties could not have foreseen when concluding the contract;

• the replacement of the supplier because of legal succession;

• minor price changes and other changes that are not substantial.

An amendment to a public contract is substantial if it renders the contract materially different from the contract initially concluded. An amendment is substantial where it:

• could have affected the range of participants or the outcome of the procurement;

• changes the economic balance of the contract in favour of the supplier in a manner not provided for in the original contract;

• extends the scope of the contract;

• results in the replacement of the supplier other than in cases of legal succession permitted by the Law.

Where a substantial amendment is required, the contracting authority must terminate the public contract and conduct a new procurement.

LOCAL CONTENT REQUIREMENTS

From 24 August 2026 until 31 December 2032, local content requirements will apply to the procurement of goods specified by the Law, including goods incorporated into works or services, where their value within the subject matter of the procurement is equal to or exceeds UAH 1 million. When procuring works or services, this threshold will be determined separately for each item of goods included in the subject matter of the procurement.

The minimum degree of localisation will be:

• 30% in 2026;

• 35% in 2027;

• 40% from 2028 until 31 December 2032.

The requirements will apply to generating sets, transformers, certain vehicles, railway rolling stock, pumps, compressors, industrial and construction equipment, and other goods specified by the Law.

Goods may be procured only if they are included in the list of localised goods and their declared degree of localisation has been confirmed by the Ministry of Economy. Confirmation will be subject to the manufacturer performing the prescribed technological operations.

The Ministry of Economy will maintain a register of bad-faith manufacturers that have submitted inaccurate information for the inclusion of their goods in the list of localised goods. Contracting authorities will be prohibited from procuring goods manufactured by such entities, including where those goods are incorporated into works or services.

Public contracts must provide for liability for breaches of local content requirements. Where a supplier provides inaccurate information or supplies goods that do not meet the declared degree of localisation, a penalty equal to 15% of the value of the relevant goods will apply.

MARTIAL LAW AND SPECIAL PROCUREMENT RULES

The Law retains the authority of the Cabinet of Ministers of Ukraine to establish separate procurement rules during martial law and for 90 days following its termination.

From 24 March 2027, the following requirements will apply to procurements conducted without using the electronic procurement system:

• a report must be published within 10 business days where the value, exclusive of VAT, is at least EUR 2,000 for goods and services or at least EUR 5,000 for works;

• for procurements with a value of at least EUR 10,000 for goods and services or at least EUR 40,000 for works, the value of the subject matter of the procurement will be determined in accordance with the methodology approved by the Cabinet of Ministers of Ukraine.